We hope you have been keeping well since our last update. Below is a summary of some of the latest information released by the Government:
Self-Employment Income Support Scheme (SEISS)
The Chancellor has announced that the Self Employment Income Support Scheme (SEISS) will be extended for a second and final time.
Provided you meet the eligibility criteria set out below, you will be able to claim a taxable grant.
The second grant is calculated based on 70% of your average monthly trading profits, multiplied by three. (e.g. if your monthly trading profits are £3000, you would be entitled to £6300)
This grant will be capped at a total of £6570.
Eligibility criteria
The grant will be subject to the self-employed individual meeting all the following conditions:
A Tax Return for 2019 must have been filed and the self-employment or partnership trading pages should have been completed. This should have been filed by 23rd April 2020.
Those whose trading profit exceeds £50,000 will be excluded
- The majority of income for the individual must derive from self-employment
These remain the same as for the first SEISS grant; you can check if you are eligible here: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
To make a claim you will need:
Self-Assessment UTR (unique taxpayer reference)
National Insurance number
Government Gateway user ID and password
Bank account number and sort code that you want the Government to pay the grant into (only provide bank account details where a Bacs payment can be accepted)
When claiming you will have to confirm to HMRC that your business has been adversely affected by coronavirus.
Applications for the second SEISS will open in August (final date to be confirmed by HMRC in due course)
Individuals can continue to apply for the first SEISS grant until 13 July 2020.
Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase. Further guidance on the second grant will be published on Friday 12 June.
As with the first SEISS, HMRC is not allowing agents to file this claim on their client’s behalf; taxpayers must make the claim themselves.
Finally; a crucial difference between SEISS and furlough – you can continue to work in your self-employed business, start a new trade and also take on other employment including voluntary work or duties as an armed forces reservist.
This will not affect your SEISS grant eligibility.
Changes to Furlough (CJRS)
The government has announced many changes in the last week that will affect furlough claims from August 2020 onwards. The timetable is set out below:
June
The CJRS scheme will continue as normal – the government will continue to pay 80% of gross wages (up to a cap to £2500 per month) as well as any associated Employer NI (ERNI) and Employer Pension costs.
During this period, Employers are not required to top up their employee’s pay to 100%
Furlough scheme closes to new entrants on 30th June 2020. This means that the CJRS will be restricted to employers currently using the scheme and previously furloughed employees.
The last 3-weeks furlough will commence on 10th June.
July
From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time.
Individual firms will be given the power to choose their shift patterns – and will be responsible for paying their wages while in work.
To enable this, employers will have to submit data on the normal number of hours versus actual hours worked
When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week, for grants to be calculated accurately across working patterns.
The Government will continue to pay 80% of people’s salaries up to a maximum of £2,500 until July 31.
This will include covering Employer NI and employer pension contributions.
Employers can pay the remaining 20% if they are able to.
August
The government will pay 80% of wages, up to a cap of £2500
Employers will pay Employers NI and Employers Pension contributions.
September
The government will pay 70% of wages, up to a cap of £2187.50.
Employers will pay Employers NI and Employers Pension contributions.
Employers must pay 10% of the wages (to make up 80% of pay; up to a cap of £2500)
October
The government will pay 60% of wages, up to a cap of £1875.
Employers will pay Employers NI and Employers Pension contributions.
Employers must pay 20% of the wages (to make up 80% of pay; up to a cap of £2500)
CJRS has been extended until the end of October 2020.
